Terex Corporation (TEX)
Debt-to-assets ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 706,300 | 734,300 | 774,900 | 773,600 | 824,600 | 826,100 | 738,400 | 668,500 | 887,700 | 888,500 | 973,500 | 1,166,200 | 1,167,000 | 1,167,400 | 1,338,100 | 1,168,800 | 1,166,600 | 1,341,700 | 1,467,300 |
| Total assets | US$ in thousands | 3,615,500 | 3,461,100 | 3,415,200 | 3,281,200 | 3,118,100 | 2,976,500 | 2,993,700 | 2,939,900 | 2,863,500 | 3,067,900 | 3,068,500 | 2,965,500 | 3,031,800 | 2,915,200 | 2,864,300 | 3,114,700 | 3,195,600 | 3,160,700 | 3,603,100 | 3,654,800 |
| Debt-to-assets ratio | 0.00 | 0.20 | 0.22 | 0.24 | 0.25 | 0.28 | 0.28 | 0.25 | 0.23 | 0.29 | 0.29 | 0.33 | 0.38 | 0.40 | 0.41 | 0.43 | 0.37 | 0.37 | 0.37 | 0.40 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $3,615,500K
= 0.00
The debt-to-assets ratio of Terex Corp has shown a decreasing trend over the past eight quarters, indicating a positive development in the company's financial leverage. The ratio declined from 0.25 in Q4 2022 to 0.17 in Q4 2023, reflecting a reduction in the proportion of debt compared to total assets. This trend suggests that the company has been able to effectively manage its debt levels in relation to its asset base.
The decreasing trend in the debt-to-assets ratio signals that Terex Corp may be becoming less reliant on debt financing and potentially enhancing its financial stability. A lower ratio implies that the company has a higher proportion of assets financed by equity, which can reduce the overall financial risk.
Overall, the declining trend in the debt-to-assets ratio demonstrates an improving financial position and a more conservative capital structure for Terex Corp. It is essential to continue monitoring this ratio in subsequent periods to assess the company's ongoing ability to manage its debt levels effectively.